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EFFECTIVENESS of SALES and
DISTRIBUTION CHANNEL of
ZUARI CEMENTS
CHAPTER-1
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NEED FOR THE STUDY
Consumer sa ti sfact ion i s the most important objec tive for any
manufacturing concern to successful ly market i ts products . ZUARI has
from gradually and would want to take a stock of the satisfaction level of
consumers and define areas where possible improvement may be made.
The research work has been therefore selected in this area.
The company which produces products doesnt give life to sustain
in competition without sales of products. So sales are important function
of the manufacturing company to get profi ts . Through sales only wealth
maximization if possible.
Distributions are also one of the important functions in marketing.
Through distr ibut ion only one company can sel l i ts products . Here the
d is tr ibut ion channel s con ta in the dea le rs . Who a re very nea r t o t he
customers and act as middlemen between the organizations. So there is a
need to study sales and distribute on strategies.
Distribution system includes distribution channels. Which are sets
of independent organizations involves in the process of making a product
(or) a serv ice avai lab le for the consumption. Dis t ribut ion ne twork i s
necessary for smooth flow of goods.
OBJECTIVES OF THE STUDY
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Primary objective:
To assess the role of dealers in ZUARI cement Industries Limited.
Secondary objective :
1. To assess the channel effectiveness in ZUARI Cement.
2 . To f ind dea le rs opinion on var ious i ssues o f t he p re sent marke t
situation and furthering (strengthening) channel effectiveness.
3. To offer suggestion in building effective channel strategy to ZUARI
Cement Industry
SCOPE OF THE STUDY
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The study aims to measure sat isfact ion level of the dealers
regarding ZUARI cement industries. The area within which the study was
conducted regarding the information the primary data is col lected in the
form of quest ionnaire col lected from the dealers in Rangareddy distr ict.
To sum up the project had with in the scope of the s tudy in the area of
EFFECTIVENESS o f SALES and DISTRIBUTION CHANNEL o f
ZUARI Cement dealers in Rangareddy district for a particular time ( JAN-
FEB 2011)
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METHODOLOGY OF STUDY:
In view of the objectives of the study, an exploratory design
has been adopted. Further the researcher also touched the descript ive
resea rche r des ign and causa l ana lysi s t o r el at e between d if fe rent
var iables . Exp lo ra to ry r esea rch i s one which l arge ly int erpret s t he
available information on the s tudy and i t lays emphasis on the analysis
and interpretation of the exiting and available information. This research
is genera l ly usefu l when we use the informat ion collected f rom three
sources, viz., study of secondary sources, discussion with individuals and
analyzing the some specific case.
Sources of Data:
To perform the Research study by Researcher, the sources of data obtained
are:
Primary Data:
This data is obtained by interacting and interviewing the dealers in
Rangareddy district.Secondary Data:
This da ta i s obta ined d i rec t ly f rom the company in the form of
broachers, charts, diagrams, document and other form s.
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Data Collection Tool:
Questionnaire:
This is one of the data col lect ion tools . I t is qui te popular
par ticularly in case big enquires. It is being adopted by pri vate
individuals , research worker, pr ivate and public organization and even
government . In th is method, a ques t ionnai re i s i ssued to the persons
c on ce rn ed wi th a r eq ue st t o a ns we r th e q ue sti on s a nd r et ur n th e
questionnaire. A questionnaire consists of number of questions printed or
typed in a definite order or a form or set of forms.
The researcher used the s tructured quest ionnaire in which the quest ions
were:
Open-ended questions
Close-ended questions
Dichotomous questions
Multiple choice questions
Sampling Design
The researcher has done h is research s tudy on the dealers of ZUARI
Cement to know their p resent satisfaction and expectation from this brand.
The researcher selec ted the dealers of ZUARI Cement a t Rangareddy
district for his research study.
Sampling Plan
Sample size: Sample size consists of 50 dealers.
Sampling unit: The Sampling unit includes al l the dealers of ZUARI
Cement products present in Rangareddy District.
S am pli ng m et ho d: F or c ol lec ti ng i nf or ma ti on f ro m d ea le rs , n on -
pro babilistic simple random sampling method is used.
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Tools of analysis:
Th e d ata c ollec ted tro ug h su rv ey h as b een c ar ef ully an d
meaningful ly analyzed by using wel l establ ished s ta t is tical tool andtechniques. Important statistical technique is percentage method.
Hypothesis:
Hypothesis i s a part of research that enables the researcher to
predict about th e future based on the present trend. It is very much
essent ia l in any research ac tiv ity to develop the polic ies for a be tter working of the system. Based on the above concept, the hypothesis for the
study developed by the researcher at the various stages of analysis.
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Limitations of the study:
The se lec ted sample members a re conspicuous and inconspicuous in
nature. So, there is chance to arise some errors in the courts of survey.
The errors may be as follows:
R es po nd en ts ma y n ot d is cl os e th e r ig ht i nf or ma ti on , b ec au se th e
researcher is very stranger to them.
Respondents may give pleasing answers to the researchers even though it
is not correct from the prospective.
The percept iona l values l ike s ta tus, not -d isclosure o f t he cor rect
information and d i ff icu l ty in expressing the i r personal fee ling to an
unknown re searcher can b ring wrong op in ion pol l t on f i ll ing the
questionnaire.
Since, the sample size is small; a perfect mix of the respondents may not
be available for th e researcher to conduct th e opinion survey.
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CHAPTER-2
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REVIEW OF LITERATURE
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CUSTOMER SATISFACTION
INTRODUCTIONThe present day Indian economy is viewed a highly competitive and
market oriented. At this s tate the success of any organization is totally
depends on cus tomer and h is s at is fact ion only. So, eve ry bus ines s
organizat ion should see that the customer as sovereign of the market
who decides the fete of it . Hence, it is the responsibility of any concern to
meet the requirements of customers f rom t ime- to- t ime with grea ter
dynamism.
Customer sat isfact ion is total ly intangible and i ts management isvery crucial aspect on the part of the business entrepreneurs. Making such
an intangible property in to tangible is great challenge among the various
organizations. This depends on customer orientation, customer dynamism,
tapping new avenues by the business unit, quality of the product, price of
the product , proper supply of materials, t imely ness in supply, effect ive
channel of distr ibut ion, customer t reatment , af ter sale service, product
chiqueness professional ism in market ing strong grand image, effect ive
pac king system, and continuous imp ro vement in business and so on.
Market:-
A mar ket, in g en er al, may b e d esc rib ed as a p la ce o r
geographical area where buyers and sel lers meet and function, goods of
services are offered for sale , and transfers of t i t le of ownership occur.
From the point of view of economics, a market is defined as an aggregate
of the potential buyers for a product or service. But, in practice, the termmarke t i s u sed to deno te any body o f per sons who a re in i nt imate
busi ness relation and carry on any extensive transaction in any
commodity.
Marketing:-
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Marketing is the process of planning and executing the conception,
pri cing, promotion and distr ibution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives.
The present generat ion of producers is intel l igent in regard to the
application of procedures. They first want to find out what the consumers
want. Then they produce goods according to the needs of the consumers.
Th ey rea liz ed th at on ly s uch p ro du cts c ould b e so ld to th e bes t
satisfaction of the users and at a profit to the maker. For this arrangement,
however, the whole organization has to be rearranged in a most complex
manner.
Marketing starts and ends with t he consumer:-
Marketing activity is concerned only with the flow of goods, from
the producer to the consumer.
In other words, to achieve maximum efficiency in marketing, there
must a l so be a f low of information v is --v is the f low of goods . This
information, for prac t ica l purpose , has to be collected even before a
pro duct is planned . Subsequent information would also enable the
manufacturer to assess periodical changes that are required. That is why it
is very often remarked that marketing starts and ends with the consumer,
with information flowing form the consumer to the producer and goods
flowing back to the consumer from the producer.
Today they have a ful l-f ledged function added to market ing, viz ,
Market information and Marketing Research. Under consumer oriented
marketing, it is highly essential to know what the consumer really wants.
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This i s poss ib le only when proper information i s co llected f rom the
consumers
A push s tra tegy means a channel member d i rec ts i ts promotion
pri ma rily at the mi ddle men that are the meant links forward in
distribution channel.
The product i s Pushed through the channel the producer wi ll
pro mo te heavily to wh oles alers wh ich then also use a push strategy to
retailers in turn the retailers promote to consumers.
As market condi tions change over t ime a company they sh if t product
growth strategies.
A company tr ies to sell more of i ts present products to i ts present
markets. Supporting tactics might include grater spending on advertising
of personal selling. A firm continues to sell i ts present products, but to a
new market
This s trategy sel ls for a company to develop new products to sel l to i ts
existing markets.
A company develops new products to sell to new markets.
Determining Intensity of distribution:
Distribution intensity ordinarily is thought to be a single decision.
However i f t he channel was more than one l evel o f middlemen the
appropriate intensity must be selected for each level.
Intensive Selective Exclusive
Product sells its product through every available outlet in a market
where consumer might reasonable look for it . Ultimate consumers demand
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Distribution Distribution Distributionthrough every through multiple through a single
whole selling
Reasonable But not all reasonable Middlemen and/Out let in a market Out lets in market or retaileinmarket
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immed ia te s at is fact ion f rom convenience goods and wil l not defer
purchases to find a particular brand. This intensive distribution is often
used by manufactures of this category of product.
A p roduct s el ls i ts p roduct t hrough mul tipl e but not a ll possibl e,
wholesalers and retailers in a market where a consumer might reasonable
look for i t . Select ive distr ibut ion if appropriate for consumer shopping
goods.
The suppl ie r agrees to s el l i ts p roduct only to a s ingle who lesa ling
middlemen and retailer in a given market producer it is essential that the
retailer carry a large inventers.
Sales and Distribution strategy:
Sales and d ist ribut ion management cons ti tu tes one of the most
important parts of marketing management. Exchange is the core, aspect
of market ing , and i t i s the sa les and d ist ribut ion management which
facilities it . Sales management has been defined as the management of a
f ir m p er so na l s el li ng f un cti on . Th e i mp or ta nc e o f th e s al es a nd
distribution function varies across organizations depending upon its nature
and veri ty of products , target market . Consumer densi ty and dispersion
a nd th e c om pe ti ti ve p ra ct ic es a mo ng t he o th er t hi ng s. S al es a nd
distribution function is organized internally, externally or jointly.
Finding and communication with prospective buyer.
Bringing together the markets offering and the prospective buyer.
Reaching an agreement on pr ice and o ther terms of the offer so tha t
ownership and possession can be transferred.
Of the markets offerings, and his satisfaction generating potential.
Actual transfer of possession i.e. t imely and safe delivery.
Of relevant consumers information and revenue in exchange of goods of
services.
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Selling
The basic task of market ing is to bring the buyers and the sel lers
together. Regardless of the desire one has to sell and the other to buy, no
exchange can take place until each one knows the desire of the other. The
function of marketing is to ensure that the right product is made available
a t t he p lace , i n t he r ight t ime and under t he r ight impress ion to the
consumer.
Distribution of Consumer Market:
Five channels are widely used in marketing tangible products to ultimateconsumers:
Producer consumer: The shortest, simplest distribution channel for
consumer goods involves no middlemen. The producer may sell from door
to door of by mai l . For instance , south-wes tern company uses co llege
students to market its books on a house-to-house basis.
Producer retailer consumer: Many large retailers buy directly
from manufactures and agricul tural products . To the chagrin of various
wholesal ing middlemen. Walmart has increased i ts direct deal ings with
pro ducts.
Producer wholesaler retailer consumer: If there is a
t rad it ional channel for consumer goods , this i s i t, smal l re ta i le rs and
manufactures buy the thousands f ind this channel the only economical ly
feasible choice.
Producer agent retailer consumer: Instead of using
wholesalers , many producers prefer to use agent middlemen to reach the
retai l market , especial ly large scale retai lers . For example. Clorox uses
agent middlemen such as Eisenhart & wholesaler that dis tr ibute a wide
range of products to retailers. In turn, Dierbergs offers its assortment of
pro ducts to final consumers.
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Distribution of Business Goods:
A variety of channels are avai lable to reach organizat ions that in
corporate the products into their manufacturing process of use them in
their operations. In the distribution of business goods, the terms industrial
distr ibutor and merchant wholesaler are synonymous. The four common
channels for business goods:
Producer user: This direct channel accounts for a greater dollar
volume o f bus ines s p roduct s t han any o ther d is tr ibut ion s truc tu re .
Manufactured of large instal lat ions, such as airplanes, generators , and
heating plants, usually sell directly to users.
Producer industrial distributor user: producers of ope ra ting suppl ie s and sma ll acces so ry equ ipment f requen tly use
industr ial dis tr ibutors to reach their markets . Manufactures of building
materials and air conditioning equipment are two examples of firms that
make heavy use of industrial distributors.
Producer agent user: Firm without their own sales
departments f id this desirable channel . Also, a company that wants to
introduce a new market may prefer to use agents rather than its own sales
force.
Producer agent industrial distributors user:
This channel is s imilar to the preceding one. I t is used when, for some
reason, i t is not feasible to sel l through agents direct ly to the business
user. The unit sale may be too small for direct sel l ing. Of decentralized
inventory may be needed to supply rapid ly, in which case the s torage
services of an industrial distributor are required.
Indian Distribution System:
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I t i s a l so impor tant to assess how the d is t r ibut ion task i s be ing
per formed in India. Th is task can be under taken by measuring the number
of functionaries in each class , their organizational s tructure and their
capital structure. The margins charged by them would be a function of the
quantum if goods moved and the population served by them and services
rendered by them and would a lso ass is t in the task i f measur ing the i r
per formance. Dividing th e members involved in each type of trade we can
briefly get an idea about the average pro ductive capital required in each
c la ss o f t rade . Hav ing a sses sed the input s, s truc tu re and s ize the ir
distribution all over India we are now in la position to assess how the task
is being performed in terms of output.
Distribution logistics:
Logis tics was a mi li ta ry term referr ing to complete system of
moving, supplying and quartering troops. Businessmen broadened logistics
to include any type of t ransportat ion and storage. Marketers applied the
t er m t o m ea n t he p hy si ca l h an di ng o f p ro du ct s. T he y a ls o b eg an
employing the term physical distribution in place of logistics. The area
of physical distribution has received considerable attention. The attention
was quite just i f ied for a country such as ours because of i ts t radi t ional
short supply markets of for the gaps often witnessed between the demand
and ava il ab le o f p roduct s. P ri ces o f e ssen ti al commodi ti es o f dai ly
consumptions are particularly amenable to any dislocation in physical
d is tr ibut ion. I f any evidence i s r equi red, we need the conce rns and
anxieties associated with news of strike in Rail and road transport.
Role of Distribution:
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The major ro le tha t d is t r ibut ion pays in any economy is tha t i t
constitutes the process by which goods and services become available for
c on su mp ti on . Ma nu fa ct ur er s o f g oo ds a nd s er vi ce s s pe ci al iz e i n
generat ing structural of form uti l ity for their products, in the sense that
they create a unique set of demand satisfiers in the form of their offering.
The actual mass scale delivery of these offerings to the consuming public
requires a different kind of specialized effort. This generates time, place
and possession ut i l i ty. In other words, you cannot obtain and consume a
final ized product unless the product is t ransported to a place where you
can ge t access to i t ; s tored t i l l you are ready to buy i t and u l t imate ly
exchange for money so that you can gain possession of it .
Physical Distribution and Channels of Distribution:
If dis tr ibut ion could be treated as a whole funct ion of market ing,
physical distribution and channels of distribution. It is found that these
two terms are used, sometimes, interchangeably. Channels of distribution
refer, primarily, to the middlemen of intermediary marketing instructions
which perform certain market ing functions. More than performing the
funct ion, t hese ins ti tu tions t ry to gain acces s t o t he t arge t marke t.
Physical distribution, on the other hand, concerns with material aspects of
the f low of goods to the consumers. I t includes t ransportat ion, s torage,
warehousing, packaging, etc . i t is technical funct ion in the sense that i t
ensures availability of products at the right time, at the right place and in
the right form. The term is used often in aboard sense to include channels
of distribution also.
Service to the manufacturers:
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T he wh ol es al er p ro vi de s p er pe tu al a nd d ef in it e c us to me rs t o th e
manufacturers. He either purchases large quantities from the manufacturer
and sells them to the retailers, of collects small orders from a number of
retailers and places a bulk order with the manufacturer. The manufacturer
is thus relived of the trouble and expense of collecting a large number of
smal l orders . He collects and provides the information required for
plan ning the production ahead. He maintains stock and thus assures
equitable distr ibut ion. He places bulk orders with the manufacturer and
thus enables him to concentrate on production and reap the benefi ts of
large-scale operations. He shoulders all marketing functions.
Position of the Wholesalers in modern marketing:
In spite of gloomy forebodings common nowadays, the wholesaler
s t i l l manages to hold his posi t ion because of the very real services he
renders. But the wholesaler today, as compared with that of a hundred
years ago, is a much less important member of the business fraternity. The
f ol lo win g a re t he i mp or ta nt f ac to rs r es po ns ib le f or r ed uc in g h is
importance:
Growing displeasure of this system of channel in all quarters.
Growth of large retai l s tores such as chain s tores, Departmental s tores,
super markets, etc.
Manufacturers desire to establish direct contracts with the customers.
Development of transport and communication systems.
Frequent and unexpected changes in style and fashion.
Emergence of new and bigger markets.
Growth of consumers co-operative in almost all fields.
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Transportation:
Transportation is necessary function of marketing because most of
the markets are geographical ly separated from the areas of production.
Majority of manufacturing plants are far away from their most important
markets because of various factors. All goods are not utilized at the place
of their origin. They require some kind of transportation to create place
ut i l i ty. Holtz Claw vividly puts the importance of t ransportat ion in the
fol lowing l iens: Minerals of other raw materials are to be t ransported
from the place of extraction of production to the factory, crops are to be
car r ied f rom the farm to the loca l market or pr imary market and f rom
there to the places of consumption. Finished products are to be transportedfrom the warehouse to the wholesalers warehouses, from warehouse to
the re ta i l dealer, and f rom the dea ler to the u l t imate consumer. The
various modes of transport fall under the three categories:
Road transport
Rail transport
Water transport
Air transport
Pipeline transport
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CHAPTER-3
INDUSTRY PROFILE
INTRODUCTION
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C ement, l ike s teel is one of the basic materials for the
technical Development of a country. Cement industry in India is Eight
decades old, the first cement plant having been commissioned in 1914 at
Borabandhar (Gujarat). The Indian cement industry is the second largest
in the world after Chinas. In terms of quality, productivity, and efficiency
it compares with the best anywhere. I t is almost ent irely home growth,
built indigenously and usi ng locally so ured inputs. In other words, the
hard ware and software that run the industry in all mostly Indian barring
one (or) two exceptional years, i ts p erformance in the last two decades has
been quite consistent and commendable in terms of Mo dernization,
expansion, growth in production, improvements in productivity and costefficiency.
In the past, the growth was at a slump till 1977 and after
that there was a reversed trend and a climate of accelerated growth set in
announcement of a formula for new investments based on 12% post tax
return . The policy of partial decontrol announced in 1982 gave further
boost to the cement Industry.
Modernization/ Expansion programmes:
I n the wake of the new policy, ambitious and comprehensive
Moderniza tion / expansion programmes have been undertaken by the
Industry, Which include conversion of wet process to energy efficient
dry process, comprehensive adoption of latest technology such as the use
of vert ical raw mil l , precalcinators and instal lat ion of pollut ion control
devices. For the implementat ion of these programmes Rs.5, 000 Crores
have already been spent.
Capacity:
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A ccording to the Cement Manufactures Association
(CMA) the industry has an instal led capaci ty of over 137 Mill ion tones
from 124 plants of 56 member companies. Most of this capacity is modern
and based on the energy eff icient (conservat ion of energy) dry process
technology. These are as many as 64 plants of a mil l ion tones or more
capacity. How ever the minimum economic s ize has increased to two
million tones a year.
Transportation of cement:
The share of roads in transport of cement is nearly 60%
whi le 39% i s moved by r ai l. I n r ecen t yea rs , s eas rou te s a re u sed
increasingly markets on the western coast.
Production:
Cement production dispatches grew almost 10% in 2001-
2002 when few sectors of the economy could avoid f i rs t t ime last year
with production of 102.4 million tones. The outlook for the current year is
also favorable. Previously the annual growth rate of cement production is
7 % to 8 %. 70% Of the production is OPC, 15 % of PPC, slag cement 11
%, and production of oil well cement, special & other verities of cement
together accounted For 1 %.
Demand and supply scenario:
The industry can expect to see good years ahead in the
lo ng run . Deman d is ex pec ted to gro w d ue to gr ea te r to cu r o n
infrastructure and housing. Although the industry is capable of meeting its
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own challenges, it stil l needs assistance from the govt., to overcome some
of its external constraints.
Demand forecasting:In particular, the housings and Roads sectors have high
linkages with other sectors n terms of economic growth and employment
generat ion a lso g ives a valuable boost t o t he for tunes o f t he Ind ian
Cement Industry.
The CMA forces that 2002-2003 will also be a favorable one or
the industry with a likely growth rate of 8 to 10 %.
Export Potential:
Even thought India is the second largest industry in the
world, and has the natural advantages of l imestone reserves, i ts export
per formance is not line with the si ze. Exports account for less than 2 %
pro duction. India is strategically placed to be a major exporter of cement
to SAARC Countries and all those around Indian Ocean such as west Asia
and Africa but India has n ot been able to fully tap this location advantage.
There is sizable surplus capacity, and a quality product.
Unlike in some of the neighboring countries, the Indian
industry does not receive any special support from the Government to
pro mo te
Expor ts the Government should lobby with some of the ne ighbor ing
countries for reduction in their import duties. The Government can help ina big way in boost ing export competi t iveness through sui table f inancial
incentives and confessional inland freights.
It is interesting to note despite the reduction of import
dut ie s yea r a ft er yea r, t he re have been no actua l a rr ival s o f cemen t
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consignment from abroad. Low cement prices prevai l ing in the country,
inadequate por t i nf ra st ructure & h igh in land f re ight f rom por ts t o
consumption centers are provided effective barriers to imports. Despite so
many constraints , the industry exported under 3.4mil l ion tones during
2001-2002. Most of the credit goes to cement plants in Gujarat. There the
companies have opened up their initiative. Some of the states, which have
been marked for export fro m recent past, are A.P., Gujarat, Tamilnadu,
Particularly in relation to export which have to be moved by sea.
A Glance on the contribution of cement Industry towards Indian
Cement has been a core building material for almost a
century. There i s no v iable Subs ti tute foreseeable in the near fu ture .S in ce c em en t i s a c or e b ui ld in g m at er ia l, i t i s d ir ec tl y r el at ed t o
Construction which in turn flows from economic growth. All forecasts
suggest l arge inves tmen ts i n housing & inf ra st ructure. I t i s easy to
visua lize i t s mult ip l ie r e ffect on the cons truct ions sec tors have h igh
linkages with other sectors in terms of economic growths and employment
generation a part from their giving a valuable boost to the fortunes of the
Indian Cement Industry.
Cement, l ike s teel is one of the basic material for the
economic development of a count ry. The economic development of a
count ry i s indexed by the consumpt ion of cement .The Indian cement
industry plays a key role in the national economy, generating substantial
Revenue for state and central government the third highest contributor in
terms of excise duty of over Rs.3500 Crores a year. Sales taxes yield as
round Rs. 1500 Crores. The industry employs a work force of over 1.5
lakhs persons and supports a further complement of 12 lakhs people
engaged indirectly.
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It must be admitted that govt. policy ann ouncements in recent
years have been pro-act ive in th is respec t & the cement indus try has
welcomed the governments announcements and ini tiat ives in building
roads etc , as there are huge advantage of cement & concrete roads over
conventional bi tumen roads. They are economical , ensure durabil ity &
long life.
The housing sector by a rough estimate can consume over 50
million tones of cement to help clear the backlog. Any impetus in housing
activity will serve as a powerful driver of the economy and consequently
the cement industry. In fact , housing is l ikely to be the most powerful
engine for growth of the economy.
Despite lowering of import duties, no import of cement is
likely. The needs renewed support from the Govt., in providing impetus in
economic growth and construction of infrastructure projects. It also seeks
G ov er nm en ts a ss is ta nc e i n e as in g i t f in an ci al b ur de n b y w ay o f
administered tools & duties. This kind of assistance will simultaneously
increase the consumption of cement further reduce prices of customers.
For cheaper costs cement can be made avai lable to the public for mass
housing 7 to help make the construct ion of infrastructure projects more
financially viable.
COMPANY PROFILE
Introduction
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The company zuari Agro Ltd was in corporate on 12 t h
may 1967 zuari cement limited has been himself off as a separate company
with 50-50 share holding by Zuari industries limited (A.K.K.Birla group
company) and Italy cement group (as Italian cement company) with effect
from 1-4-2000 with Head-quarters at Bangalore, Zuari and I taly cement
group (through cement Francis group company) have formed joint venture
company Viz., Zuari cement limited. It is projected to increase the cement
capacity of 2.2MT.
TEXMACO Limited in the year 1995 was changed to Zuari
cement by division of ZUARI CHEMICAL LIMITED, jointly promoted by
K.K.BIRLA & USX CORPORATION a major steel leader in U.S.A.
2.1 LOCATION OF THE PLANT
Zuari cement is running under the Flagship of Zuari Agro chemicals
Limited. Zuari cement is strategies located 6 kms away from Yerraguntla
town of Kamalapuram (Taluk) in Kadapa district Andhra Pradesh. Railway
line has been laid connection the Yerraguntla station of Zuari Cements.
Location of the plant at this place is having following advantages.
1. Location in industrial belt of Rayalaseema with sophisticated facilities like water,
electricity, labor, transport etc.
2. Present of the best limestone proved scientifically for cement.
3. Low free lime to ensure reduced surface cracks.
4. Low heat of hydration for better soundness.5. Low magnesia content to ensure reduced tensile cracks.
6. Specially designed setting time to suit Indian working conditions.
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2.2 JOINT VENTURE WITH ITALIC CEMENT
Zuari group has identified as one of the core business to grow. It
has therefore, been decided to consti tute a separate corporate ent ity and
hi re off cement business to i t. To acce lera te the growth and achieve
capaci ty add it ions quick ly i t dec ided to form a joint ven tu re with a
strategic partner af ter careful evaluat ion the mult inat ional cement giant
i tal ic cement group was ident if ied to be sui tab le partner for pursuing
growth.
Zuari and Italic cement groups have agreed to form a joint venture with 50-50
equity sharing. The Zuari cement business will get transferred to the joint venturecompany Viz. Zuari cement limited.
I t is proposed to have quarters of cement business at
Hyderabad. It is proposed to increase the capacity of1.7 MTPA in span of
3 to 4 years . I tal ic cement group is the largest producer & distr ibutor of
cement in European and one of the leaders in the world maker place. The
group ope ra te s i n 13 count ri es i nc luding Belgium, Canada , F rance,
Greece, I taly, Moraco, Spain, Turkey and U.S with recent acquisi t ion in
Bulgaria, Kazakhstan and Thailand.
The group was founded in 1864 and had i t s head quar te rs in
Bermago, Italy; currently the group has 54 p lans with an installed capacity
of 40 MTPA spread over 13 countries. The group also has 500 RMC plants
a l l over the wor ld . The consol ida ted group turn over in 1998 was 3 .4
bill ion US$. Th e group has excellent R & D and Ma chine design facilities
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head quartered at Bermago, I taly, which renders technical support to al l
over the group plants.
2.3 ITALIC CEMENTRIC GROUPOur Mission
Our Shared Ambition : Effective and EfficientTo become the most effective and most efficient cement manufacture and
distributor in the world.
Our Approach : We are local we think Global.Cement aggregates and ready to mix concrete manufacture and distribution
are local business. Around the world we serve local customers in local markets withlocal needs.
Our Way of Working : Technological leadership is our Goal.Our technology plays the key role in realizing our ambition we are committed
to increasing the value of our groups, our companies, our products and services, thecapabilities of our employees and the ecological standards by which we operate.
Our spirit: One team worldwide.We operate worldwide in many diverse markets, cultures and continents.
We are proud of our cultural diversity and our distinctive character.2.4 ORGANIZAITONAL STRUCTURE
The organizat ional s tructure of Zuari is s imple and f lat . The
employees are assigned grades based on their pay packages. These grades
are not based on the job responsibi l i t ies may have different grades for
reasons like duration of association with the company.
2.5 OBJECTIVES OF THE COMPANY:
To Provide employment to the local employees
To supply best cement at economical prices
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To get the optimum uti l izat ion of the raw materials avai lable of
their own mines.
Manufacturing quali ty cement and to s tand as a market leader in
south India.
2.6 RECENT DEVELOPMENTS
Zuari cement has signed on agreement with the cement corporation
of India (CCI) to market CCIs cement produces from their faci l i ty at
tender in Andhra Pradesh.
Zuari Cement shall market this in the state of Tamil Nadu, Kerala, Andhra Pradeshand pond cherry. The incremental tonnage for zuari cement as a result of this arrangementis around 3.5 lakh tones.
2.7 SOCIAL RESPONSIBILITY
As part of social responsibility the company is maintaining one
dispensary where the near by villagers are treated free of cost. It has one
pri ma ry school & also it has constructed bus shelters, traffic sign als water
sheds, water tanks hospitals, houses & road dividers.
2.9 MOTIVATION
Motivation in zuari cement limited is one by encouraging the employees byawarding them rewarding them and identifying their talents and promoting them to higher
positions. The career development is possible through proper motivational factors.
2.10 MAJOR USERS
Zuari cement is marked through out south India by a wide network
of s tockiest . The zuar i sa les officers and representat ives a re based in
almost all cities.
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And towns in south India, Major users of zuari cement are as follows.
Madras refineries limited.
Airport authority of India
Tamilnadu real estate limited
East coast construction and industries limited.
Tamil Nadu port trust.
Asia pacific hotels limited
Grind well Norton limited
Tirumala Tirupati Devasthanam
APSEB Srisailam power project.
Ramco industries visaka industries. Hyderabad Everest limited
Nagarjuna Co nstruction.
2.11 CORPORATE MARKETING OFFICE
Zuari cements limited corporate marketing office is at cheennai
(Tamil Nadu) and branches are at:
Hyderabad - Andhra Pradesh.
Visakapatnam - Andhra Pradesh.
Bang lore - Karnataka.
Cochin - Kerala.
Hanaji - Gao.
Cheennai - Tamil Nadu. Bhuwaneswar - Orrisa.
2.12 COMPETITORS
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Penna - Tadipathri Ultra Tech - Tadipathri Malabar - Cochin
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PRODUCT PROFILE
Zuari Cement manufactures and distributes its own main product lines of cement
.We aim to optimize production across all of our markets, providing a complete solution
for customer's needs at the lowest possible cost, an approach we call strategic integration
of activities.
Cement is made from a mixture of 80 percent limestone and 20 percent clay. These
are crushed and ground to provide the "raw meal, a pale, flour-like powder. Heated to
around 1450 C (2642 F) in rotating kilns, the meal undergoes complex chemical
changes and is transformed into clinker. Fine-grinding the clinker together with a small
quantity of gypsum produces cement. Adding other constituents at this stage produces
cements for specialized uses.
ZUARI CEMENTS RANGE OF CEMENT
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Zuari Superfine Cement Zuari 43 Grade Cement Zuari Superfine P53
cement
ZUARI SUPERFINE CEMENT
ZUARI 43 GRADE CEMENT
ZUARI SUPERFINE P 53 CEMENT
QUALITY
Six strong benefits that make Zuari 43, 53 Grade, Super fine, Vishnu Premium
and Vishnu Shakti the ideal cement
Higher compressive strength. Better soundness. Lesser consumption of cement for M-20 Concrete Grade and above. Faster de shuttering of formwork. Reduced construction time with a superior and wide range of
cement catering to every conceivable building need, Zuari cement isa formidable player in the cement market.
Here just a few reasons why Zuari cement chosen by millions of India.
Ideal raw material
35
http://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspxhttp://www.zuaricements.com/scripts/productsOPC53.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspxhttp://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsPPCsuperfine.aspxhttp://www.zuaricements.com/scripts/productsOPC43.aspx -
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Low lime and magnesia content and h igh proportion of silicates.
Greater fineness.
Slow initial and fast final setting.
Wide range of applications. Quality customer services.
FEATURES THAT PROMISE BETTER PERFORMANCE
Concrete of better strength and workability since voids of air and water are
reduced.
Protection against alkali aggregate reaction due to the presence of a very glassy
state of silica.
Resistance towards chemical attacks and lowers permeability.
Long term durable concrete, because of low free lime.
Lower heat of hydration
SHARE CAPITAL OF ZUARI CEMENT LIMITED
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TAX ASSET / LIABILITY AT THE BALANCE SHEET OF
ZUARI CEMENT LIMITED
Major components of deferred tax asset / l iability as at the balance sheetdate comprises of the following:
31 s t December 2009(Amalgamated)
1. Share Capital
Authorized
27,00,00,000 (Previous period :27,00,00,000) equity shares of Rs.10 each
27,000.00
17,00,00,000 (previous period : 17,00,00,000) 9%redeemable non-convertible cumulative
preference shares of Rs.10 each
17,000.00
Issued, subscribedand fully paid up
25,79,61,400 (previous period : 25,79,61,400)equity shares of Rs.10each [refer to note (a)and note (b) below]
25,796.14
17,00,00,000(previous
period :17,00,00,000)9% redeemablenon-convertiblecumulative
preferenceshares of Rs. 10each
17,000.00
42,796.14
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31 s t Dece(Amalg
Deferred tax liability
Excess of depreciation allowable under Income-Tax
Act, 1961 over depreciation provided in accounts.Total
Deferred tax asset
Unabsorbed losses and depreciation (to theextent of virtual certainty) [refer Note I
below)
Provision for leave encashment
Voluntary retirement expenditureallowable under Income-Tax Act1961.
Disallowance under Section 43B 134.
Provision for doubtful debtsand advances
50.9
Provision for stores andspares
205.01
Others 170.72
Total (B) 790.36
Net Deferred taxliability (A B)
5,659.36
Deferred taxliability takenover onamalgamation
320.00
Deferredtax chargefor theyear
5,339.36
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CHAPTER-4
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DATA ANALYSIS & INTERPRETATION
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Table -1
Dealers relation with ZUARI Cements Industry
Business experience Number of respondents Percentage
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having less than 3 years and 10% of the dealers have one year
experience.
Table-2
Dealers feeling about Company Image
Dealers Opinion Number of
respondents
Percentage
Highly satisfied 15 30Satisfied 30 60
Neutral 5 10Dissatisfied 0 0Others 0 0Total 50 100
0
20
40
60
80
100
120
H i g h l y
s a t i s
f i e d
S a t i s
f i e d
N e u t r
a l
D i s s a
t i s f i e
d
O t h e
r s T o
t a l
Number of respondents
Percentage
Inference:-
30% of the dealers falling highly satisfied about companied image
and 60%of the dealers were feeling moderately satisfied, 10% of the
dealers were feeling satisfied about companies image.
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Table-3
To know on which aspects the customer gets more satisfaction
Dealers opin ion Number of respondents PercentageBrand name 6 12Price 2 4Quality 38 76Usages 4 8Others 0 0Total 50 100
0
20
40
60
80
100
120
B r a n
d n a m e P r i c e Q u
a l i t y U s
a g e s O t h e r s T o t a
l
Number of respondents
Percentage
Inference: -
Majority of the respondents are gibing fist preference to quality,
second preference to brand name, then followed by product, usage and
pri ce.
Table-4
Customers come to shop
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Dealers opinion Number of respondents PercentageBy your influence 8 16By friends 8 16By advertising 8 16By Brand Name 26 52
Other 0 0Total 50 100
020406080
100120
B y y o
u r i n f
l u e n c
e
B y f r i e n
d s
B y a d
v e r t i s
i n g
B y B r
a n d N
a m e
O t h e
r T o
t a l
Number of respondents
Percentage
Inference: -
From the above table it is inferred that majority of the customers
come to retail outlets by the influence of brand name of ZUARI cement
and followed by advertising, dealers influence.
Table-5 Stock out problems
Dealers opinion Number of respondents PercentageFrequently 0 0Rarely 5 10
No 45 90
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Total 50 100
020406080
100120
F r e q u
e n t l y
R a r e l
y N o T o t a l
Number of respondents
Percentage
Inference : -
90% of the dealers are getting satisfied with the s upply of ZUARI
cement by expressing that they do not come across stock out problem.
Table-6
Dealer satisfaction on supply of product
Dealers Opinion No. of.
Respondents
Percentage
Highly satisfied 12 24Moderately satisfied 12 24Satisfied 24 48
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Dissatisfied 2 4Highly dissatisfied 0 0Total 50 100
020406080
100120
H i g h l y
s a t i s f i e d
S a t i s f i e d
H i g h l y
d i s s a t i s f i e d
No.Of. respondents
Percentage
Inference: -
48% of the dealers are satisfying by the supply and 24% moderately
satisfying, 24% highly satisfied and 2% dissatisfied.
Table-7
Dealers satisfaction on in time deliveries
Dealers opinion No. Of. Respondents PercentageHighly satisfied 2 4Moderately satisfied 16 32
Satisfied 32 64Dissatisfied 0 0Highly dissatisfied 0 0Total 50 100
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020
406080
100120
D e a l e r s
o p i n i o n
M o d e r a t e l y
s a t i s f i e d
D i s s a t i s f i e d
T o t a l
Series1
Series2
Series3
Inference:-
The majority of the dealers are satisfied with the mode of dispatch by the
company
Table-8
Customers Awareness
Dealers opinion No. Of. Respondents PercentageAdvertisement 19 38Campaign 4 8Dealer 27 54Others 0 0Total 50 100
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020
406080
100120
A d v e
r t i s e m
e n t
C a m p
a i g n e
D e a l e
r
O t h e
r s T o
t a l
No.Of.Respondents
Percentage
Inference:-
The above table shows that 54% respondents are saying that dealers
play majors in customers awareness about th e pro duct. And 38% of
respondents are stating that advertisement is second highest promotional
activity to create awareness in the minds of customer.
Table-9
Sales satisfaction
Dealers opinion No. of. Respondents PercentageHighly satisfied 9 8Moderately satisfied 11 22
Satisfied 30 60Dissatisfied 0 0Highly dissatisfied 0 0Total 50 100
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020
406080
100120
D e a l e r s
o p i n i o n
H i g h l y
s a t i s f i e d
M o d e r a t e l y
s a t i s f i e d
S a t i s f i e d
D i s s a t i s f i e d
H i g h l y
d i s s a t i s f i e d
T o t a l
Inference:-
60% of the dealers are satisfying the sale of ZUARIs product
following 22% if the dealers moderately satisfied, 18% of the dealers were
highly satisfied.
Table-10
Demand estimation on various products
Dealers opinion No. of. Respondents PercentagePast sales 9 18Seasonal 13 26
Orders 28 56Others 0 0Total 50 100
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020
406080
100120
P a s t
s a l e s
S e a s
o n a l
O r d e
r s
O t h e
r s t o t
a l
No.Of.respondents
Percentage
Inference:-
The high percent of dealers are estimating the demand for the product
through orders and 26%of are estimating on seasonal base.
Table-11
Industry to stock point fright expenses percentage
Dealers opinion No. Of. Respondents Percentage2% 30 603% 10 204% 8 165% 2 4Total 50 100
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0
2040
60
80
100
120
2% 3% 4% 5% total
No.Of.Respondents
Percentage
Inference: -The dealers are incurs very less fright charges representing 2%, to
receive goods from company to your stock point.
CHAPTER-5
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FINDINGS
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FINDINGS
1. Majori ty of the dealers having 3 to 6 years experience, and less
number of dealers having above 6 years experience.
2. Majority of dealers just satisfied about the companys image,
remaining are neutral, Highly satisfied.
3. Majori ty of the customers sat isfying about the quali ty of the
pro duct next pref erence given brand name followed by usages, pri ce.
4. Most of the dealers expresses customers visit to shop by brand name
only. And followed dealers influence, by friends, by advertising.
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5. The entire dealers were saying they do not face any difficulties to
deal with the customers to selling the product.
6. Majori ty of the dealers saying they do no come across s tock out
pro blems.
7. Majority of the dealers satisfying with the supply from the company
and very few members satisfied, dissatisfied.
8. All the dealers were saying the ent ire f loor space were providing
only for goods storing purpose.
9. Majority of the dealers satisfied with the mode of dispatch by the
company. And few members were moderately satisfied, highly
satisfied.
10.Majority of the dealers they estimate the demand for various pro ducts by th e orders and followed by seasonal base and past sales.
11.All the dealers were saying they do not face any difficult in dealing
with the company.
12.Majority of the dealers were saying about the fright it incurs 2% to
receive goods from company to your stock point.
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SUGGESTIONS
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SUGGESTIONS
1. Provide opportunity for new entrants in the business.
2. To create awareness about the company, using of various ways of
pro motional activities such as advertisement, to maintain the better
relation with dealers.
3. If possible increase the quality of the product and reduce the price.
4. Company and dealers should try to maintain customer good
relationship as much as the possible.
5. Try to maintain better supply chain in order to improve the services.
Supply the products with in time to the dealers.
6. Try to provide discounts to dealers and credit faci li t ies .
7. Customers, who purchase the huge amount of products, provide free
home delivery to customers place.
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Questionnaire
Name of th e sh op : Date :
Name of th e proprietor: Ph No :
District : Signature:
1) How long have you been dealing with ZUARI Cement?
a)
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5) Do you face any difficulty in dealing with the customers?
a) Yes b) No
If yes please specify----------
6) Do you face stock out problems for ZUARI Cement?
a) Frequently b) Rarely c) No
7) Are you satisfied with the supply from the company?
a) Highly sat i sf ied b) moderate ly sa ti sf ied c) Sat is f ied d)
Dissatisfied e) Highly dissatisfied
8) How much floor space you have provide for ----------?
a) Goods storing purpose-------
b) Office purpose------
9) In time delivery is very important for better serving the market. In this
connection are you satisfied with the mode o dispatch by the company?
a) Highly sat i sf ied b) moderate ly sa ti sf ied c) Sat is f ied d)
Dissatisfied e) Highly dissatisfied
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10) According to you most of the customers are aware of ZUARI Cement
through
a) Advertisement b) Campaign c) Dealer d)
Others
11) Do you satisfy with the sales of ZUARI Cement?
a ) High ly sat is fi ed b ) modera te ly sat is fi ed c ) Sa ti sf ied d )
Dissatisfied e) Highly dissatisfied
12) How do estimate the demand for various products?
a) Past sales b) Seasonal c) Orders d) Others
13) Do you face any difficult in dealing with the company?
a) Yes b)No
If yes please specify____________________________________
14) What percentage of fright if incurs you to received goods from
company to your store point?
a) 2% b) 3% c) 4% d) 5%
15) Do you feel like to suggest any thing which improves distribution
effectiveness?
a) yes b) no
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BIBLIOGRAPHY
1. Phillipkotler,2003Marketing Mgmt, T.M.H,New Delhi (9TH EDITION)
2. Schiffman&Kanuk,1997, Consumer behavior,
PHI
(6 T H EDITION)
3. Levin & Kirpatric, Quantitative Techniques For
M.B.A, Tata McGraw Hill-1985
Websites:
1. www.marketing.org
2. www.estrategicmarketing.com
3. www.marketingprofs.com4. www.btobonline.com
5. www.marketingstudies.net
Journals:
1. Economic Times
2. Business Standard
60
http://www.marketing.org/http://www.estrategicmarketing.com/http://www.marketingprofs.com/http://www.btobonline.com/http://www.marketingstudies.net/http://www.marketing.org/http://www.estrategicmarketing.com/http://www.marketingprofs.com/http://www.btobonline.com/http://www.marketingstudies.net/ -
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